China’s Ministry of Commerce (MOFCOM) has issued its final determination (Announcement 16/2026) on 25 March 2026 in the trade and investment barrier investigation concerning Mexico’s measures affecting Chinese goods and investment. The authority concluded that the measures constitute trade and investment barriers under China’s relevant legal framework.
The investigation was initiated in September 2025 and focused on Mexico’s tariff increases and related regulatory actions applied to imports from countries without free trade agreements with Mexico, with a primary impact on Chinese exports. MOFCOM determined that tariff increases, in some cases reaching 35 to 50 percent and covering more than 1,400 tariff lines, have significantly restricted market access for Chinese products.
In addition to tariffs, the investigation identified a range of non-tariff barriers. These include more stringent customs procedures, rules of origin requirements, and administrative practices that may delay or complicate importation. MOFCOM found that these measures have created discriminatory or restrictive effects on Chinese enterprises engaged in trade and investment activities involving Mexico.
The measures are estimated to affect more than USD 30 billion in Chinese exports, with notable impact on sectors such as automotive, machinery, and related industrial goods. The findings emphasize the extent to which these restrictions have disrupted normal trade flows and reduced the competitiveness of Chinese companies in the Mexican market.
Following the affirmative determination, MOFCOM stated that China is entitled to take responsive actions in accordance with its domestic laws. These may include pursuing bilateral consultations with Mexico, initiating dispute settlement proceedings at the World Trade Organization, or adopting countermeasures if necessary.
Companies with exposure to China Mexico trade flows should closely monitor developments, assess potential tariff and regulatory risks, and prepare for possible escalation affecting supply chains, pricing, and investment structures.
Official report released by the Ministry of Commerce (MOFCOM):
https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_ed831513b70f4a14a8cbdb458f5c23be.html